4 ms·
It was predicted by a lot of people with experience in supply chain management or business. https://en.wikipedia.org/wiki/Bullwhip_effect https://en.wikipedia.
by nostrademons 5y ago
It was predicted by a lot of people with experience in supply chain management or business.
https://en.wikipedia.org/wiki/Bullwhip_effect https://en.wikipedia.org/wiki/Bullwhip_effect
Basically - complex systems behave in complex ways. When you have a small shift in consumer demand, it gets amplified up the supply chain, such that you need potentially big shifts in the production of intermediate components. We had a big shift in consumer demand. The supply chain basically can't cope, and so we get chaotic behavior until consumer demand normalizes and revised sales forecasts get propagated up the supply chain.